First Financial Holdings, Inc. Reports Record 2013 Operating Earnings of $63.5 Million

  First Financial Holdings, Inc. Reports Record 2013 Operating Earnings of
  $63.5 Million

                       Declares Quarterly Cash Dividend

Business Wire

COLUMBIA, S.C. -- January 28, 2014

First Financial Holdings, Inc. (NASDAQ: SCBT) today released its unaudited
results of operations and other financial information for the three-month
period and year ended December 31, 2013. Highlights of 2013 include the
following:

  *Net income available to common shareholders of $13.2 million, or $0.55
    diluted EPS in 4Q 2013, up 5.7%, compared to $11.5 million, or $0.52
    diluted EPS in 3Q 2013, and up 44.7% from $5.9 million, or $0.38 diluted
    EPS in 4Q 2012;
  *Diluted EPS for YTD 2013 was $2.38, up 17.2%, compared to $2.03 in 2012,
    operating diluted EPS was $3.16, up 26.9%, compared to $2.49 in 2012;
  *Operating earnings of $19.3 million, which exclude merger expenses and
    include preferred stock dividends, or $0.80 diluted EPS in 4Q 2013
    compared to $18.8 million, or $0.85 diluted EPS in 3Q 2013 and $11.1
    million, or $0.72 diluted EPS in 4Q 2012;
  *Return on average assets was 0.70% annualized in 4Q 2013 compared to 0.66%
    in 3Q 2013 and 0.52% in 4Q 2012; Operating return on average assets was
    1.00% annualized in 4Q 2013 compared to 1.07% in 3Q 2013 and 0.98% in 4Q
    2012;
  *Net charge-offs of non-acquired loans decreased to 0.26% annualized in 4Q
    ^  2013, compared to 0.45% annualized in 3Q 2013 and 0.64% annualized in
    4Q 2012;
  *Legacy loan growth for 4Q 2013 was $124.0 million or 18.1% annualized and
    for the year legacy loan growth was $294.2 million or 11.4% in all
    categories; and
  *Core deposit growth, excluding CDs and legacy First Financial merger, up
    $78.0 million or 9.5% annualized in 4Q 2013 and $121.0 or 3.7% for the
    year. Including legacy First Financial, core deposit growth was $44.0
    million, or 3.5% annualized from 3Q 2013.

Quarterly Cash Dividend

The Board of Directors of First Financial Holdings, Inc. has declared a
quarterly cash dividend of $0.19 per share payable on its common stock. This
per share amount is equal to the dividend paid in the immediately preceding
quarter and is $0.01 per share, or 5.6%, higher than a year ago. The dividend
will be payable on February 21, 2014 to shareholders of record as of February
14, 2014.

Fourth Quarter 2013 Financial Performance

Please refer to the accompanying tables for detailed comparative data on
results of operations and financial results.

The Company reported consolidated net income available to common shareholders
of $13.2 million, or $0.55 per diluted common share for the three months ended
December 31, 2013 up from $11.5 million, or $0.52 per diluted common share for
the three months ended September 30, 2013. Driving this increase from the
third quarter was the following:

  *an increase in net interest income primarily the result of the full
    quarter impact of legacy First Financial after the merger;
  *continued improvement in asset quality resulting in no non-acquired
    provision for loan losses;
  *an increase in noninterest income primarily the result of the full quarter
    impact of legacy First Financial after the merger;
  *a decrease in the effective tax rate to 34% from 36.1%; partially offset
    by
  *an increase in noninterest expense primarily the result of the full
    quarter impact of legacy First Financial after the merger.

“We are pleased to report record operating earnings per share for the year,
which increased 26.9% to $3.16,” said Robert R. Hill, Jr. CEO of First
Financial Holdings, Inc. “I am also pleased with the total return to our
shareholders for 2013, which was over 67%. This was certainly a
transformational year for our company. While the merger with First Financial
has created a lot of momentum, I am also pleased with the non-merger related
performance. Asset quality improved significantly with many of our credit
metrics returning to pre-downturn levels, our organic loan and deposit growth
was exceptional with 11% organic loan growth for the year, and we continued to
add talent to the team, which only makes us stronger. We are also on track
with our merger integration and achieving our efficiency targets. We
experienced a mortgage volume decline this quarter as a result of the rising
rate environment, and saw some margin compression linked quarter. Overall,
2013 was a record year for our company. With our merger integration going well
and our branding change scheduled for this summer, we are optimistic about the
opportunities in 2014.”

Asset Quality

During the fourth quarter of 2013, SCBT continued to experience improvement in
asset quality, excluding acquired loans and acquired other real estate owned
(OREO), as nonperforming loans declined by $7.3 million, or 14.7%, and
classified assets declined by $15.3 million, or 13.8% from the third quarter
of 2013. Classified assets declined by $47.2 million during 2013, or 32.9%.
Non-acquired nonperforming assets (NPAs) as a percentage of total non-acquired
loans and repossessed assets declined to 1.94% compared to 2.40% in the third
quarter of 2013. NPAs, excluding acquired NPAs, declined by $10.4 million from
the third quarter 2013 level. In addition, 30-89 day past due non-acquired
loans declined by $1.3 million during the fourth quarter of 2013 as compared
to the third quarter of 2013.

At December 31, 2013, the allowance for non-acquired loan losses was $34.3
million or 1.20% of non-acquired period-end loans. The current allowance for
loan losses provides 0.81 times coverage of period-end non-acquired
nonperforming loans, up from 0.73 times at the end of the third quarter of
2013. Net charge-offs within the non-acquired portfolio were $1.8 million for
the quarter or 0.26% annualized, down from the third quarter of 2013 of $3.0
million or 0.45% annualized and down from the fourth quarter of 2012 of $4.1
million or 0.64% annualized. For the year, SCBT’s net charge-offs totaled
$11.1 million, or 0.41%, compared to $18.2 million, or 0.73%, in 2012.

OREO costs increased $914,000 from the third quarter to $4.3 million for the
fourth quarter of 2013. This increase was the result of approximately $300,000
in additional write downs on commercial OREO, a full quarter of carrying cost
on the OREO acquired in the First Financial merger, and an increase in the
carrying cost on the all other OREO assets, (including property taxes,
insurance, appraisals, and legal cost).

Net Interest Income and Margin

Non-taxable equivalent net interest income was $84.4 million for the fourth
quarter of 2013, a $4.7 million increase from the third quarter, resulting
from the following:

1. A $455.7 million increase in the average balance of acquired loans from the
third quarter of 2013 resulting from the full quarter impact of FFCH acquired
loans;

2. An increase in non-acquired loans and resulting yield contributed $1.3
million in additional interest income; partially offset by

3. A decrease of 72 basis points in the yield on acquired loans due to the
lower yielding First Financial acquired loans and the full quarter impact.

Tax-equivalent net interest margin decreased 20 basis points from the third
quarter of 2013 and increased slightly by 3 basis points from the fourth
quarter of 2012. The Company’s average yield on interest-earning assets
decreased 19 basis points while the average rate on interest-bearing
liabilities remained flat from the third quarter of 2013. During the fourth
quarter of 2013, the Company’s average total assets increased to approximately
$8.0 billion and average earning assets increased to $6.9 billion. The growth
in average earning assets was supported by growth in average interest-bearing
liabilities of more than $458.0 million.

Noninterest Income and Expense

Noninterest income was $20.7 million in the fourth quarter of 2013, up $5.5
million from the third quarter of 2013 and up $9.8 million from fourth quarter
of 2012. The increase from the third quarter of 2013 was driven by impact of a
full quarter of First Federal customer-oriented noninterest income which
includes service charges, bankcard services, mortgage banking income, and
trust and investment services. Noninterest income grew significantly by $9.8
million increase from fourth quarter of 2012 due to The Savannah Bancorp, Inc.
and First Financial acquisitions. The increases were partially offset by lower
mortgage banking income due to the decline in the mortgage pipeline and
reduced gains from loans sold in the secondary market, and a decline in the
fair value of the hedges related to mortgage banking activity. In addition the
negative accretion on the FDIC indemnification asset in the third quarter was
$7.4 million, $882,000 more than the fourth quarter of 2012, but $196,000 less
than the third quarter of 2013. The increase in negative accretion was the
result of the reduction of expected cash flows from the indemnification asset
related to certain pools of acquired loans which had improved estimated cash
flows. Other noninterest income increased from the third quarter of 2013 by
$1.6 million and from the fourth quarter of 2012 by $2.5 million, due
primarily to an increase in recoveries from acquired assets and from the full
quarter contribution from the FFCH merger.

Noninterest expense was $83.9 million in the fourth quarter of 2013, up from
$75.4 million from the third quarter. This increase from the third quarter of
2013 was primarily due to the impact of full quarter of FFCH operational cost
of $24.8 million for the fourth quarter of 2013, up from $18.7 million for the
third quarter of 2013 (66 days of FFCH operations). The efficiency ratio for
the quarter was 79.2%, up from 78.7% in the third quarter. Our operational
efficiency ratio, which excludes merger expenses and OREO related expenses,
was 66.3% compared to 64.3% in the third quarter.

Balance Sheet and Capital

At the end of the year, SCBT’s total assets were $7.9 billion, up from $5.1
billion at December 31, 2012, and down from $8.0 billion at September 30,
2013. Since December 31, 2012, the Company’s balance sheet has grown by more
than 54%. Asset growth is evident in every line item due to the FFCH merger
except OREO and FDIC receivable for loss share agreements and loans held for
sale. During the fourth quarter of 2013, the Company purchased $205.9 million
in GSEs and mortgage backed securities. Offsetting this increase were
decreases in cash and cash equivalents by $165.7 million, all loans net of the
allowance by $42.0 million, loans held for sale by $21.9 million and the FDIC
receivable by $21.8 million.

The Company’s book value per share increased to $40.72 per share at December
31, 2013, compared to $40.31 at September 30, 2013. Capital increased by $11.4
million due primarily to net income available to common shareholder of $13.2
million, which was partially offset by $4.6 million in dividends paid to our
shareholders. Tangible book value (“TBV”) per share increased by $0.59 per
share to $22.35 at December 31, 2013 from $21.76 at September 30, 2013 due
primarily to the capital increases described above. In addition, tangible
common equity to tangible assets increased to 7.13% at December 31, 2013 up
from 6.85% at the end of the third quarter.

The total risk-based capital ratio is estimated to be around 14.3% consistent
with the third quarter of 2013. Tier 1 leverage ratio decreased to
approximately 9.1% from 10.1% at September 30, 2013. The decline is driven by
a $763.2 million increase in average total assets due to including a full
quarter of FFCH assets in the average balance. The Company’s capital position
remains “well-capitalized” by all measures at December 31, 2013.

“We continued to reposition our balance sheet during the quarter as we
increased our investment securities portfolio to almost $800.0 million, and
our growth in the non-acquired loan portfolio during the quarter was also
encouraging as we move into 2014,” said John C. Pollok, COO and CFO. “The
asset quality overall continues to improve and the quality of the acquired
loan portfolio continues to reflect declines in riskier assets.”

First Financial Holdings, Inc. will hold a conference call on January 28^th at
11 a.m. ET during which management will review earnings and performance
trends. Callers wishing to participate may call toll-free by dialing
888-317-6016. The number for international participants is 412-317-6016. The
conference ID number is 10038650. Participants can also listen to the live
audio webcast through the Investor Relations section of www.SCBTonline.com. A
replay will be available beginning January 28^th by 2:00 p.m. ET until 9:00
a.m. on February 12^th. To listen to the replay, dial 877-344-7529 or
412-317-0088. The pass code is 10038650.

First Financial Holdings, Inc., (SCBT) Columbia, South Carolina is a
registered bank holding company incorporated under the laws of South Carolina.
The Company consists of SCBT, the Bank and the following divisions: NCBT,
Community Bank & Trust, The Savannah Bank, and First Federal. The Bankalso
operates Minis & Co., Inc. and First Southeast 401k Fiduciaries, both wholly
owned registered investment advisors; and First Southeast Investor Services, a
wholly owned broker dealer. Providing financial services for over 80 years,
First Financial Holdings, Inc. operates 141 locations in 19 South Carolina
counties, 12 Georgia counties, and 4 North Carolina counties. First Financial
Holdings, Inc. has assets of approximately $7.9 billion and its stock is
traded under the symbol SCBT in the NASDAQ Global Select Market. More
information can be found at www.SCBTonline.com.

Non-GAAP Measures

Statements included in this press release include non-GAAP measures and should
be read along with the accompanying tables which provide a reconciliation of
non-GAAP measures to GAAP measures. Management believes that these non-GAAP
measures provide additional useful information. Non-GAAP measures should not
be considered as an alternative to any measure of performance or financial
condition as promulgated under GAAP, and investors should consider the
company's performance and financial condition as reported under GAAP and all
other relevant information when assessing the performance or financial
condition of the company. Non-GAAP measures have limitations as analytical
tools, and investors should not consider them in isolation or as a substitute
for analysis of the company's results or financial condition as reported under
GAAP.

Cautionary Statement Regarding Forward Looking Statements

Statements included in this report which are not historical in nature are
intended to be, and are hereby identified as, forward looking statements for
purposes of the safe harbor provided by Section 21E of the Securities Exchange
Act of 1934. Forward looking statements generally include words such as
“expects,” “projects,” “anticipates,” “believes,” “intends,” “estimates,”
“strategy,” “plan,” “potential,” “possible” and other similar expressions. The
Company cautions readers that forward looking statements are subject to
certain risks and uncertainties that could cause actual results to differ
materially from anticipated results. Such risks and uncertainties, include,
among others, the following possibilities: (1) the outcome of any legal
proceedings instituted against the Company; (2) credit risks associated with
an obligor’s failure to meet the terms of any contract with the bank or
otherwise fail to perform as agreed under the terms of any loan-related
document; (3) interest risk involving the effect of a change in interest rates
on the bank’s earnings, the market value of the bank's loan and securities
portfolios, and the market value of the Company's equity; (4) liquidity risk
affecting the bank’s ability to meet its obligations when they come due; (5)
risks associated with an anticipated increase in the Company's investment
securities portfolio, including risks associated with acquiring and holding
investment securities or potentially determining that the amount of investment
securities the Company desires to acquire are not available on terms
acceptable to the Company; (6) price risk focusing on changes in market
factors that may affect the value of traded instruments in “mark-to-market”
portfolios; (7) transaction risk arising from problems with service or product
delivery; (8) compliance risk involving risk to earnings or capital resulting
from violations of or nonconformance with laws, rules, regulations, prescribed
practices, or ethical standards; (9) regulatory change risk resulting from new
laws, rules, regulations, accounting principles, proscribed practices or
ethical standards, including, without limitation, increased capital
requirements (including, without limitation, the impact of the capital rules
adopted to implement Basel III), Consumer Financial Protection Bureau rules
and regulations, and potential changes in accounting principles relating to
loan loss recognition; (10) strategic risk resulting from adverse business
decisions or improper implementation of business decisions; (11) reputation
risk that adversely affects earnings or capital arising from negative public
opinion; (12) terrorist activities risk that results in loss of consumer
confidence and economic disruptions; (13) cybersecurity risk related to our
dependence on internal computer systems and the technology of outside service
providers, as well as the potential impacts of third-party security breaches,
subjects the company to potential business disruptions or financial losses
resulting from deliberate attacks or unintentional events; (14) economic
downturn risk potentially resulting in deterioration in the credit markets,
greater than expected non-interest expenses, excessive loan losses and other
negative consequences, which risks could be exacerbated by potential negative
economic developments resulting from federal spending cuts and/or one or more
federal budget-related impasses or actions; (15) greater than expected
noninterest expenses; (16) excessive loan losses; (17) failure to realize
synergies and other financial benefits from, and to limit liabilities
associates with, mergers and acquisitions, including, without limitation,
mergers with The Savannah Bancorp, Inc. (“Savannah”) and First Financial
Holdings, Inc. ("FFCH"), within the expected time frame; (18) potential
deposit attrition, higher than expected costs, customer loss and business
disruption associated with merger and acquisition integration, including,
without limitation, with respect to Savannah and FFCH, and including, without
limitation, potential difficulties in maintaining relationships with key
personnel and other integration related-matters; (19) the risks of
fluctuations in market prices for Company common stock that may or may not
reflect economic condition or performance of the Company; (20) the payment of
dividends on Company common stock is subject to regulatory supervision as well
as the discretion of the board of directors of the Company, the Company's
performance and other factors; and (21) other risks and uncertainties
disclosed in the Company's most recent Annual Report on Form 10-K filed with
the SEC or disclosed in documents filed or furnished by the Company with or to
the SEC after the filing of such Annual report on Form 10-K, any of which
could cause actual results to differ materially from future results expressed,
implied or otherwise anticipated by such forward looking statements. The
Company undertakes no obligation to update or otherwise revise any
forward-looking statements, whether as a result of new information, future
events, or otherwise.


First Financial Holdings, Inc.
(Unaudited)
(Dollars in thousands, except per share data)


                       Three Months Ended                                                                           Fourth      Twelve Months Ended                 YTD
                                                                                                                         Quarter
                          December 31,     September 30,    June 30,         March 31,        December 31,       2013 -        December 31,                          2013 -
                                                                                                                         2012                                                2012
EARNINGS SUMMARY                                                                                                                                                             %
(non tax                  2013               2013               2013               2013               2012               % Change      2013             2012               Change
equivalent)
Interest income           $ 88,748           $ 83,808           $ 57,530           $ 56,169           $ 50,263           76.6   %      $ 286,255          $ 187,488          52.7  %
Interest expense           4,359            4,029            2,246            2,368            2,351           85.4   %       13,002          11,094          17.2  %
Net interest income         84,389             79,779             55,284             53,801             47,912           76.1   %        273,253            176,394          54.9  %
Provision for loan          (12        )       659                179                1,060              2,211            -100.5 %        1,886              13,619           -86.2 %
losses (1)
Noninterest income          20,683             15,157             8,485              9,523              10,900           89.8   %        53,848             41,283           30.4  %
Noninterest expense        83,896           75,419           44,885           46,441           48,139          74.3   %       250,641         158,898         57.7  %
Income before
provision for               21,188             18,858             18,705             15,823             8,462            150.4  %        74,574             45,160           65.1  %
income taxes
Provision for              7,204            6,804            6,173            5,174            2,552           182.3  %       25,355          15,128          67.6  %
income taxes
Net income                  13,984             12,054             12,532             10,649             5,910            136.6  %        49,219             30,032           63.9  %
Preferred stock            812              542              --               --               --                             1,354            --         
dividends
Net income
available to common       $ 13,172          $ 11,512          $ 12,532          $ 10,649          $ 5,910           122.9  %      $ 47,865          $ 30,032          59.4  %
shareholders (GAAP)
                                                                                                                                                                             
Effective tax rate          34.00      %       36.08      %       33.00      %       32.70      %       30.16      %                     34.00      %       33.50      %
                                                                                                                                                                             
Basic
weighted-average            23,825,636         21,893,528         16,790,167         16,787,487         15,320,472       55.5   %        19,865,674         14,698,236       35.2  %
common shares
Diluted
weighted-average            24,079,350         22,127,979         16,989,818         16,954,039         15,446,778       55.9   %        20,077,108         14,795,722       35.7  %
common shares
                                                                                                                                                                             
Earnings per common       $ 0.55             $ 0.53             $ 0.75             $ 0.63             $ 0.39             41.0   %      $ 2.41             $ 2.04             18.1  %
share - Basic
Earnings per common         0.55               0.52               0.74               0.63               0.38             44.7   %        2.38               2.03             17.2  %
share - Diluted
                                                                                                                                                                             
Cash dividends
declared per common       $ 0.19             $ 0.19             $ 0.18             $ 0.18             $ 0.18             5.6    %      $ 0.74             $ 0.69             7.2   %
share
Dividend payout             34.74      %       39.71      %       24.46      %       28.75      %       46.07      %     -24.6  %        31.91      %       34.11      %     -6.4  %
ratio (2)
                                                                                                                                                                             
Operating Earnings
(non-GAAP) (3)
Net income (GAAP)         $ 13,984           $ 12,054           $ 12,532           $ 10,649           $ 5,910            136.6  %      $ 49,219           $ 30,032           63.9  %
Securities (gains)          --                 --                 --                 --                 (89        )                     --                 (130       )
losses, net of tax
Merger and
conversion related         6,147            7,326            576              1,321            5,274           16.6   %       15,679           7,018      
expense, net of tax
Net operating
earnings (loss)             20,131             19,380             13,108             11,970             11,095           81.4   %        64,898             36,920           75.8  %
(non-GAAP)
Preferred stock            812              542              --               --               --                             1,354            --         
dividends
Net operating
earnings (loss)
available to common       $ 19,319          $ 18,838          $ 13,108          $ 11,970          $ 11,095          74.1   %      $ 63,544          $ 36,920          72.1  %
shareholders
(non-GAAP)
                                                                                                                                                                             
Operating earnings
(loss) per common         $ 0.81             $ 0.86             $ 0.78             $ 0.71             $ 0.72             12.5   %      $ 3.20             $ 2.50             28.0  %
share - Basic
Operating earnings
(loss) per common           0.80               0.85               0.77               0.71               0.72             11.1   %        3.16               2.49             26.9  %
share - Diluted
                                                                                                                                                                             
                                                                                                                         
                          AVERAGE for Quarter Ended                                                                      Fourth        AVERAGE for Twelve Months            YTD
                                                                                                                         Quarter
                          December 31,       September 30,      June 30,           March 31,          December 31,       2013 -        December 31,       December 31,       2013 -
                                                                                                                         2012                                                2012
BALANCE SHEET             2013               2013               2013               2013               2012               % Change      2013               2012               %
HIGHLIGHTS                                                                                                                                                                   Change
Loans held for sale       $ 35,673           $ 53,204           $ 40,040           $ 51,216           $ 60,183           -40.7  %      $ 45,015           $ 45,112           -0.2  %
Acquired loans, net
of allowance for            2,883,309          2,427,583          927,520            997,010            581,619          395.7  %        1,813,425          481,476          276.6 %
acquired loan
losses
Non-acquired loans          2,793,522          2,698,580          2,629,897          2,576,545          2,529,725        10.4   %        2,677,450          2,484,996        7.7   %
Total loans (1)             5,676,831          5,126,163          3,557,417          3,573,555          3,111,344        82.5   %        4,490,875          2,966,472        51.4  %
FDIC receivable for
loss share                  105,554            116,849            114,724            139,172            162,580          -35.1  %        118,977            205,460          -42.1 %
agreements
Total investment            699,592            656,658            527,926            553,214            510,503          37.0   %        610,252            451,583          35.1  %
securities
Intangible assets           379,878            308,730            123,881            125,257            87,372           334.8  %        235,337            80,072           193.9 %
Earning assets              6,880,973          6,254,128          4,496,341          4,489,187          3,967,363        73.4   %        5,538,555          3,703,277        49.6  %
Total assets                7,977,605          7,214,418          5,069,993          5,117,003          4,517,054        76.6   %        6,354,974          4,276,257        48.6  %
Noninterest-bearing         1,510,734          1,359,137          1,023,668          969,400            884,593          70.8   %        1,215,052          798,849          52.1  %
deposits
Interest-bearing            5,098,095          4,626,023          3,150,909          3,236,610          2,853,420        78.7   %        4,037,194          2,758,712        46.3  %
deposits
Total deposits              6,608,829          5,985,160          4,174,577          4,206,010          3,738,013        76.8   %        5,252,246          3,557,561        47.6  %
Federal funds
purchased and               229,382            251,551            297,025            319,602            248,225          -7.6   %        274,080            229,249          19.6  %
repurchase
agreements
Other borrowings            101,948            93,849             54,461             54,713             47,443           114.9  %        76,421             46,509           64.3  %
Shareholders'
common equity               914,336            790,554            517,141            511,392            450,305          103.0  %        684,753            419,601          63.2  %
(excludes preferred
stock)
Shareholders'               979,336            837,185            517,141            511,392            450,305          117.5  %        712,890            419,814          69.8  %
equity
                                                                                                                                                                             


First Financial Holdings, Inc.
(Unaudited)
(Dollars in thousands)

                       ENDING Balance                                                                               Fourth
                                                                                                                         Quarter
                          December 31,     September 30,    June 30,         March 31,        December 31,       2013 -
                                                                                                                         2012
BALANCE SHEET             2013               2013               2013               2013               2012               %
HIGHLIGHTS                                                                                                               Change
Loans held for sale       $ 30,586           $ 52,467           $ 47,980           $ 50,449           $ 65,279           -53.1 %
Acquired loans (13)         2,825,749          2,994,222          904,704            979,583            1,059,828        166.6 %
Non-acquired loans          2,865,216          2,741,242          2,665,595          2,604,298          2,571,003        11.4  %
Total loans (1)             5,690,965          5,735,464          3,570,299          3,583,881          3,630,831        56.7  %
FDIC receivable for
loss share                  93,947             115,773            104,048            124,340            146,171          -35.7 %
agreements
Total investment            812,603            652,610            531,579            533,255            560,591          45.0  %
securities
Intangible assets           377,737            381,375            123,352            124,668            125,801          200.3 %
Allowance for
acquired loan               (11,618    )       (12,260    )       (14,461    )       (15,605    )       (17,218    )     -32.5 %
losses (13)
Allowance for
non-acquired loan           (34,331    )       (36,145    )       (38,625    )       (41,669    )       (44,378    )     -22.6 %
losses (1)
Premises and                188,114            184,959            109,794            110,792            115,583          62.8  %
equipment
Total assets                7,937,911          8,028,441          5,043,078          5,141,929          5,136,446        54.5  %
Noninterest-bearing         1,487,798          1,481,791          1,046,537          1,002,662          982,046          51.5  %
deposits
Interest-bearing            5,067,699          5,181,315          3,136,432          3,216,694          3,316,397        52.8  %
deposits
Total deposits              6,555,497          6,663,106          4,182,969          4,219,356          4,298,443        52.5  %
Federal funds
purchased and               211,401            233,792            262,447            328,701            238,621          -11.4 %
repurchase
agreements
Other borrowings            102,060            101,347            54,372             54,638             54,897           85.9  %
Total liabilities           6,956,441          7,058,415          4,526,486          4,627,718          4,628,897        50.3  %
Shareholders'
common equity               916,470            905,026            516,592            514,211            507,549          80.6  %
(excludes preferred
stock)
Shareholders'               981,470            970,026            516,592            514,211            507,549          93.4  %
equity
                                                                                                                         
Common shares
issued and                  24,104,124         24,066,545         17,032,061         17,017,904         16,937,464       42.3  %
outstanding
                                                                                                                         
                                                                                                                         
                          ENDING Balance                                                                                 Fourth
                                                                                                                         Quarter
                          December 31,       September 30,      June 30,           March 31,          December 31,       2013 -
                                                                                                                         2012
NONPERFORMING                                                                                                            %
ASSETS (ENDING            2013               2013               2013               2013               2012               Change
BALANCE) (7)
Non-acquired
Non-acquired              $ 31,333           $ 38,631           $ 40,854           $ 42,945           $ 48,387           -35.2 %
nonaccrual loans
Restructured loans          10,690             10,837             11,689             13,636             13,151           -18.7 %
Non-acquired other
real estate owned           13,456             16,555             15,950             19,680             19,069           -29.4 %
("OREO")
Accruing loans past         258                122                198                121                500              -48.4 %
due 90 days or more
Other nonperforming        --               --               --               --               --         
assets
Total non-acquired
nonperforming              55,737           66,145           68,691           76,382           81,107          -31.3 %
assets
ASC Topic 310-20
Acquired Loans
Acquired nonaccrual         --                 --                 --                 --                 --
loans
Acquired accruing
loans past due 90          --               --               --               --               --         
days or more
Total ASC Topic
310-20 acquired            --               --               --               --               --         
loans
ASC Topic 310-30
Acquired Loans (7)
Acquired nonaccrual        --               --               --               --               --         
loans
Total ASC Topic
310-30 acquired            --               --               --               --               --         
loans
Acquired OREO and
other nonperforming
assets
OREO covered under
FDIC loss share             27,520             40,543             35,142             34,244             34,257           -19.7 %
agreements
OREO not covered
under FDIC loss             23,941             18,775             17,536             16,766             13,179           81.7  %
share agreements
Other nonperforming        943              718              --               26               44         
assets
Total acquired OREO
and other                  52,404           60,036           52,678           51,036           47,480          10.4  %
nonperforming
assets
Total acquired
nonperforming              52,404           60,036           52,678           51,036           47,480          10.4  %
assets
Total nonperforming       $ 108,141         $ 126,181         $ 121,369         $ 127,418         $ 128,587         -15.9 %
assets
                                                                                                                         
Excluding Acquired
Assets
NPLs as a
percentage of              1.48       %      1.81       %      1.98       %      2.18       %      2.41       %
period end
non-acquired loans
Total nonperforming
assets as a
percentage of total        1.94       %      2.40       %      2.56       %      2.91       %      3.13       %
non-acquired loans
and repossessed
assets (1) (4)
Total nonperforming
assets as a                0.70       %      0.82       %      1.36       %      1.49       %      1.58       %
percentage of total
assets (5)
Including Acquired
Assets
NPLs as a
percentage of              0.74       %      0.86       %      1.47       %      1.58       %      1.70       %
period end loans
Total nonperforming
assets as a
percentage of total        1.88       %      2.16       %      3.32       %      3.47       %      3.46       %
loans and
repossessed assets
(1) (4)
Total nonperforming
assets as a                1.36       %      1.57       %      2.41       %      2.48       %      2.50       %
percentage of total
assets
                                                                                                                         


First Financial Holdings, Inc.
(Unaudited)
(Dollars in thousands)

                 ENDING Balance                                                                Fourth                                
                                                                                                    Quarter
                    December      September     June 30,      March 31,     December        2013 -
                    31,             30,                                             31,             2012
OTHER ASSET
QUALITY             2013            2013            2013            2013            2012            % Change
INFORMATION
Classified
Assets
(Ending
Balance) (11)
Classified
non-acquired        $ 82,593        $ 94,820        $ 107,671       $ 121,222       $ 124,133       -33.5  %
loans
OREO and
other                13,456        16,555        15,950        19,680        19,069       -29.4  %
nonperforming
assets
Total
classified          $ 96,049       $ 111,375      $ 123,621      $ 140,902      $ 143,202      -32.9  %
assets
                                                                                                                                                 
Tier 1
capital and
non-acquired        $ 737,735      $ 725,471      $ 494,562      $ 484,744      $ 477,686      54.4   %
allowance for
loan losses
Classified
assets as a
percentage of
Tier 1               13.02   %      15.35   %      25.00   %      29.07   %      29.98   %
capital and
non-acquired
allowance for
loan losses
                                                                                                                                                 
Non-acquired
Loans 30-89         $ 7,238        $ 8,543        $ 10,957       $ 7,199        $ 7,189        0.7    %
Day Past Due
                                                                                                                                                 
                                                                                                                                                 
                                                                                                    
                    Quarter Ended                                                                   Fourth       Twelve Months Ended             YTD
                                                                                                    Quarter
                    December        September       June 30,        March 31,       December        2013 -       December        December        2013 -
                    31,             30,                                             31,             2012         31,             31,             2012
ALLOWANCE FOR                                                                                                                                    %
LOAN LOSSES         2013            2013            2013            2013            2012            % Change     2013            2012            Change
(1)
Non-acquired
Loans:
Balance at
beginning of        $ 36,145        $ 38,625        $ 41,669        $ 44,378        $ 46,439        -22.2  %     $ 44,378        $ 49,367        -10.1 %
period
Loans charged         (2,778  )       (3,815  )       (2,827  )       (4,148  )       (4,291  )     -35.3  %       (13,568 )       (20,255 )     -33.0 %
off
Overdrafts            (389    )       (479    )       (393    )       (459    )       (446    )     -12.8  %       (1,720  )       (1,675  )     2.7   %
charged off
Loan                  1,215           1,095           436             826             550           120.9  %       3,572           3,155         13.2  %
recoveries
Overdraft            138           154           140           219           131          5.3    %      651           601          8.3   %
recoveries
Net                   (1,814  )       (3,045  )       (2,644  )       (3,562  )       (4,056  )     -55.3  %       (11,065 )       (18,174 )     -39.1 %
charge-offs
Provision for
loan losses
on                   --            565           (400    )      853           1,995        -100.0 %      1,018         13,185       -92.3 %
non-acquired
loans
Balance at
end of
period,             $ 34,331       $ 36,145       $ 38,625       $ 41,669       $ 44,378       -22.6  %     $ 34,331       $ 44,378       -22.6 %
non-acquired
loans
                                                                                                                                                 
Allowance for
non-acquired
loan losses
as a                 1.20    %      1.32    %      1.45    %      1.60    %      1.73    %                   1.20    %      1.73    %
percentage of
non-acquired
loans (1)
Allowance for
non-acquired
loan losses
as a                 81.20   %      72.89   %      73.23   %      73.49   %      71.53   %                   81.20   %      71.53   %
percentage of
non-acquired
nonperforming
loans
Net
charge-offs
on
non-acquired
loans as a
percentage of        0.26    %      0.45    %      0.40    %      0.56    %      0.64    %                   0.41    %      0.73    %
average
non-acquired
loans
(annualized)
(1)
                                                                                                                                                 
DAY 2
VALUATION
ALLOWANCE ON
ACQUIRED
LOANS (13)
Balance at
beginning of        $ 12,260        $ 14,461        $ 15,605        $ 17,218        $ 17,421                     $ 17,218        $ 23,607
period
Provision for
loan losses
on acquired
loans:
Provision for
loan losses
before
benefit               73              (456    )       320             (855    )       994                          (918    )       512
attributable
to FDIC loss
share
agreements
Benefit
attributable
to FDIC loss         (85     )      550           259           1,062         (778    )                   1,786         (78     )
share
agreements
Net provision
for loan
losses on            (12     )      94            579           207           216                        868           434     
acquired
loans
Provision for
loan losses
recorded
through the           85              (550    )       (259    )       (1,062  )       778                          (1,786  )       78
FDIC loss
share
receivable
Reduction due
to loan              (715    )      (1,745  )      (1,464  )      (758    )      (1,197  )                   (4,682  )      (6,901  )
removals (12)
Balance at
end of
period, ASC         $ 11,618       $ 12,260       $ 14,461       $ 15,605       $ 17,218                    $ 11,618       $ 17,218  
Topic 310-30
acquired
loans
                                                                                                                                                 


First Financial Holdings, Inc.
(Unaudited)
(Dollars in thousands, except per share data)

                ENDING Balance                                                                Fourth
                                                                                                   Quarter
                   December      September     June 30,      March 31,     December        2013 -
                   31,             30,                                             31,             2012
LOAN
PORTFOLIO          2013            2013            2013            2013            2012            % Change
(ENDING
balance) (1)
Acquired
loans:
Acquired
covered
loans:
Commercial
non-owner
occupied
real estate:
Construction
and land           $ 43,396        $ 50,582        $ 31,647        $ 36,941        $ 40,358        7.5    %
development
Commercial
non-owner           53,525         62,985         42,945         47,594         53,514        0.0    %
occupied
Total
commercial
non-owner            96,921          113,567         74,592          84,535          93,872        3.2    %
occupied
real estate
Consumer
real estate:
Consumer
owner                38,946          41,379          39,005          41,879          45,943        -15.2  %
occupied
Home equity         35,884         37,943         20,857         21,370         22,066        62.6   %
loans
Total
consumer             74,830          79,322          59,862          63,249          68,009        10.0   %
real estate
Commercial
owner                88,722          93,309          41,401          43,395          50,189        76.8   %
occupied
real estate
Commercial
and                  14,475          16,596          9,454           10,742          12,421        16.5   %
industrial
Other income
producing            31,739          37,543          34,941          37,366          40,674        -22.0  %
property
Consumer non        1,878          2,322          1,696          2,107          2,649         -29.1  %
real estate
Total
acquired             308,565         342,659         221,946         241,394         267,814       15.2   %
covered
loans
Acquired
non-covered
loans:
Commercial
non-owner
occupied
real estate:
Construction
and land             129,289         134,342         72,453          82,885          97,316        32.9   %
development
Commercial
non-owner           226,530        245,046        158,100        169,504        177,278       27.8   %
occupied
Total
commercial
non-owner            355,819         379,388         230,553         252,389         274,594       29.6   %
occupied
real estate
Consumer
real estate:
Consumer
owner                974,392         1,013,022       90,258          98,117          102,683       848.9  %
occupied
Home equity         335,241        349,517        70,903         75,039         77,896        330.4  %
loans
Total
consumer             1,309,633       1,362,539       161,161         173,156         180,579       625.2  %
real estate
Commercial
owner                211,030         230,849         124,312         132,851         139,007       51.8   %
occupied
real estate
Commercial
and                  98,046          111,135         61,237          64,913          73,446        33.5   %
industrial
Other income
producing            171,544         183,996         97,747          106,019         113,460       51.2   %
property
Consumer non        371,112        383,656        7,748          8,861          10,928        3296.0 %
real estate
Total
acquired            2,517,184      2,651,563      682,758        738,189        792,014       217.8  %
non-covered
loans
Total
acquired             2,825,749       2,994,222       904,704         979,583         1,059,828     166.6  %
loans
Non-acquired
loans:
Commercial
non-owner
occupied
real estate:
Construction
and land             299,951         288,199         285,370         273,488         273,420       9.7    %
development
Commercial
non-owner           291,170        282,678        298,769        298,707        290,071       0.4    %
occupied
Total
commercial
non-owner            591,121         570,877         584,139         572,195         563,491       4.9    %
occupied
real estate
Consumer
real estate:
Consumer
owner                548,170         498,734         460,434         443,134         434,503       26.2   %
occupied
Home equity         257,139        255,291        250,988        249,356        255,284       0.7    %
loans
Total
consumer             805,309         754,025         711,422         692,490         689,787       16.7   %
real estate
Commercial
owner                833,513         814,259         802,125         796,139         784,152       6.3    %
occupied
real estate
Commercial
and                  321,824         301,845         294,580         291,308         279,763       15.0   %
industrial
Other income
producing            143,204         140,024         136,957         131,776         133,713       7.1    %
property
Consumer non         136,410         116,312         104,239         93,997          86,934        56.9   %
real estate
Other               33,835         43,900         32,133         26,393         33,163        2.0    %
Total
non-acquired        2,865,216      2,741,242      2,665,595      2,604,298      2,571,003     11.4   %
loans
Total loans
(net of            $ 5,690,965     $ 5,735,464     $ 3,570,299     $ 3,583,881     $ 3,630,831     56.7   %
unearned
income) (1)
                                                                                                   
Loans held         $ 30,586        $ 52,467        $ 47,980        $ 50,449        $ 65,279        -53.1  %
for sale
                                                                                                   


First Financial Holdings, Inc.
(Unaudited)
(Dollars in thousands, except per share data)

                      Quarter Ended                                                                                   Twelve Months Ended
                         December 31,     September 30,    June 30,         March 31,        December 31,             December   December
                                                                                                                              31,          31,
SELECTED RATIOS          2013               2013               2013               2013               2012                     2013         2012
                                                                                                                                           
Return on average
assets                    0.70       %      0.66       %      0.99       %      0.84       %      0.52       %           0.77   %     0.70   %
(annualized)
                                                                                                                                           
Operating return
on average assets         1.00       %      1.07       %      1.04       %      0.95       %      0.98       %           1.02   %     0.86   %
(annualized)
(non-GAAP) (3)
                                                                                                                                           
Return on average
common equity             5.72       %      5.78       %      9.72       %      8.45       %      5.22       %           6.99   %     7.16   %
(annualized)
                                                                                                                                           
Return on average
equity                    5.67       %      5.71       %      9.72       %      8.45       %      5.22       %           6.90   %     7.15   %
(annualized)
                                                                                                                                           
Operating return
on average common
equity                    8.38       %      9.45       %      10.17      %      9.49       %      9.80       %           9.28   %     8.80   %
(annualized)
(non-GAAP) (3)
                                                                                                                                           
Operating return
on average equity         8.16       %      9.18       %      10.17      %      9.49       %      9.80       %           9.10   %     8.79   %
(annualized)
(non-GAAP) (3)
                                                                                                                                           
Return on average
common tangible
equity                    10.90      %      10.39      %      13.48      %      11.92      %      6.91       %           11.54  %     9.27   %
(annualized)
(non-GAAP) (10)
                                                                                                                                           
Operating return
on average
tangible common           15.46      %      16.43      %      14.07      %      13.30      %      12.59      %           15.03  %     11.30  %
equity
(annualized)
(non-GAAP) (10)
                                                                                                                                           
Return on average
tangible equity           10.25      %      9.88       %      13.48      %      11.92      %      6.91       %           11.15  %     9.26   %
(annualized)
(non-GAAP) (10)
                                                                                                                                           
Net interest
margin (tax               4.91       %      5.11       %      5.01       %      4.94       %      4.88       %           4.99   %     4.83   %
equivalent)
                                                                                                                                           
Efficiency ratio          79.22      %      78.74      %      69.49      %      72.37      %      80.95      %           75.85  %     72.20  %
(tax equivalent)
                                                                                                                                           
Operating
efficiency ratio          66.30      %      64.27      %      63.79      %      64.47      %      62.84      %           64.79  %     62.10  %
excluding OREO
expense
                                                                                                                                           
Book value per           $ 40.72           $ 40.31           $ 30.33           $ 30.22           $ 29.97      
common share
                                                                                                                                           
Tangible common
equity per common        $ 22.35           $ 21.76           $ 23.09           $ 22.89           $ 22.54      
share (non-GAAP)
(10)
                                                                                                                                           
Common shares
issued and                24,104,124       24,066,545       17,032,061       17,017,904       16,937,464 
outstanding
                                                                                                                                           
Common                    11.55      %      11.27      %      10.24      %      10.00      %      9.88       %
equity-to-assets
                                                                                                                                           
Equity-to-assets          12.36      %      12.08      %      10.24      %      10.00      %      9.88       %
                                                                                                                                           
Tangible common
equity-to-tangible        7.13       %      6.85       %      7.99       %      7.76       %      7.62       %
assets (non-GAAP)
(10)
                                                                                                                                           
Tangible
equity-to-tangible        7.99       %      7.70       %      7.99       %      7.76       %      7.62       %
assets (non-GAAP)
(10)
                                                                                                                                           
Tier 1 leverage           9.1        %      10.0       %      9.2        %      8.8        %      9.8        %
(9)
                                                                                                                                           
Tier 1 risk-based         13.4       %      13.1       %      13.6       %      13.2       %      12.7       %
capital (9)
                                                                                                                                           
Total risk-based          14.3       %      14.4       %      14.8       %      14.4       %      13.9       %
capital (9)
                                                                                                                                           


First Financial Holdings, Inc.
(Unaudited)
(Dollars in thousands, except per share data)
                 
                     Quarter Ended                                                                       Twelve Months Ended        
                     December     September    June 30,     March 31,    December                    December     December
                     31,            30,                                          31,                         31,            31,
RECONCILIATION
OF NON-GAAP TO       2013           2013           2013           2013           2012                        2013           2012
GAAP
                                                                                                                                           
Pre-tax,
Pre-provision
Operating
Earnings (6)
Net income           $ 13,984       $ 12,054       $ 12,532       $ 10,649       $ 5,910        136.6  %     $ 49,219       $ 30,032       63.9  %
(GAAP)
Provision for
loan losses            (12    )       659            179            1,060          2,211        -100.5 %       1,886          13,619       -86.2 %
(1)
Provision for         7,204        6,804        6,173        5,174        2,552       182.3  %      25,355      15,128      67.6  %
income taxes
Pre-tax,
pre-provision          21,176         19,517         18,884         16,883         10,673       98.4   %       76,460         58,779       30.1  %
income
Securities             --             --             --             --             (128   )                    --             (189   )
gains
Merger and
conversion            9,314        10,397       860          1,963        7,552                     22,784       10,214 
related
expense
Pre-tax,
pre-provision
operating            $ 30,490      $ 29,914      $ 19,744      $ 18,846      $ 18,097      68.5   %     $ 99,244      $ 68,804      44.2  %
earnings
(non-GAAP)
                                                                                                                                           
Operating
Return of
Average Assets
(3)
Operating
return on              1.00   %       1.07   %       1.04   %       0.95   %       0.98   %                    1.02   %       0.86   %
average assets
(non-GAAP)
Effect to
adjust for             0.00   %       0.00   %       0.00   %       0.00   %       0.01   %                    0.00   %       0.00   %
securities
gains (losses)
Effect to
adjust for
merger and            -0.30  %      -0.41  %      -0.05  %      -0.11  %      -0.47  %                   -0.25  %      -0.16  %
conversion
related
expenses
Return on
average assets        0.70   %      0.66   %      0.99   %      0.84   %      0.52   %                   0.77   %      0.70   %
(GAAP)
                                                                                                                                           
Operating
Return of
Average Common
Equity (3)
Operating
return on              8.38   %       9.45   %       10.17  %       9.49   %       9.80   %                    9.28   %       8.80   %
average equity
(non-GAAP)
Effect to
adjust for             0.00   %       0.00   %       0.00   %       0.00   %       0.08   %                    0.00   %       0.03   %
securities
gains (losses)
Effect to
adjust for
merger and            -2.66  %      -3.67  %      -0.45  %      -1.04  %      -4.66  %                   -2.29  %      -1.67  %
conversion
related
expenses
Return on
average common        5.72   %      5.78   %      9.72   %      8.45   %      5.22   %                   6.99   %      7.16   %
equity (GAAP)
                                                                                                                                           
Operating
Return of
Average Equity
(3)
Operating
return on              8.16   %       9.18   %       10.17  %       9.49   %       9.80   %                    9.10   %       8.79   %
average equity
(non-GAAP)
Effect to
adjust for             0.00   %       0.00   %       0.00   %       0.00   %       0.08   %                    0.00   %       0.03   %
securities
gains (losses)
Effect to
adjust for
merger and            -2.49  %      -3.47  %      -0.45  %      -1.04  %      -4.66  %                   -2.20  %      -1.67  %
conversion
related
expenses
Return on
average equity        5.67   %      5.71   %      9.72   %      8.45   %      5.22   %                   6.90   %      7.15   %
(GAAP)
                                                                                                                                           
Return on
Average Common
Tangible
Equity
Return on
average common
tangible               10.90  %       10.39  %       13.48  %       11.92  %       6.91   %                    11.54  %       9.27   %
equity
(non-GAAP)
Effect to
adjust for            -5.18  %      -4.61  %      -3.76  %      -3.47  %      -1.69  %                   -4.55  %      -2.11  %
tangible
assets
Return on
average common        5.72   %      5.78   %      9.72   %      8.45   %      5.22   %                   6.99   %      7.16   %
equity (GAAP)
                                                                                                                                           
Operating
Return on
Average Common
Tangible
Equity
Operating
return on
average common         15.46  %       16.43  %       14.07  %       13.30  %       12.59  %                    15.03  %       11.30  %
tangible
equity
(non-GAAP)
Effect to
adjust for
securities
gai*Story too
large*

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